Abercrombie & Fitch Co. (ANF) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ross Stores, Inc.

The TJX Cos., Inc.

Tapestry, Inc.

Gap, Inc.

American Eagle Outfitters, Inc.

Abercrombie & Fitch Co.

Urban Outfitters, Inc.

Burlington Stores, Inc.

Capri Holdings Ltd.

Carter's, Inc.

Bath & Body Works, Inc.

Why is Abercrombie & Fitch Co. ?

High Management Efficiency with a high ROE of 26.80%

Company has a low Debt to Equity ratio (avg) at times

Low Debt Company with Strong Long Term Fundamental Strength

Flat results in Jul 25

DEBTORS TURNOVER RATIO(HY) Lowest at 35.28 times

With ROE of 46.19%, it has a attractive valuation with a 6.55 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -19.74%, its profits have risen by 26.5% ; the PEG ratio of the company is 0.5

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 14.11% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -19.74% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Abercrombie & Fitch Co. should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Footwear)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Abercrombie & Fitch Co. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Abercrombie & Fitch Co.

9.72%

-0.59

68.30%

S&P 500

22.24%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.00%

EBIT Growth (5y)

49.69%

EBIT to Interest (avg)

25.87

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.33

Sales to Capital Employed (avg)

3.24

Tax Ratio

27.14%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

50.49%

ROE (avg)

26.80%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.79

EV to EBIT

10.61

EV to EBITDA

8.72

EV to Capital Employed

8.81

EV to Sales

1.44

PEG Ratio

Dividend Yield

ROCE (Latest)

83.09%

ROE (Latest)

37.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.38% (YoY

-9What is not working for the Company

ROCE(HY)

Lowest at 39.04%

DEBT-EQUITY RATIO (HY)

Highest at 50.24 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 40.74 times

OPERATING PROFIT(Q)

Lowest at USD 129.03 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11.58 %

PRE-TAX PROFIT(Q)

Lowest at USD 96.38 MM

NET PROFIT(Q)

Lowest at USD 68.8 MM

EPS(Q)

Lowest at USD 1.47

Here's what is working for Abercrombie & Fitch Co.

Raw Material Cost

Fallen by -1.38% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 42.3 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Abercrombie & Fitch Co.

Operating Profit

Lowest at USD 129.03 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 11.58 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 96.38 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 68.8 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 1.47

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Highest at 50.24 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 40.74 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at USD 0.11 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income